Mantra's Shocking 90% Plunge: Is This the New Terra Luna?

Hang onto your hats, crypto fans! Mantra, the so-called "second real-world asset token" after Chainlink, just took a nosedive straight off a cliff, plummeting over 90% in just 24 hours. Yep, you read that right. It's a crypto rollercoaster, and this time, Mantra's on the wild ride down.

So, what the heck happened?

Just days ago, Mantra (OM) was strutting around with a 640% gain over the past year. But now? Its shiny $6-billion market cap has shriveled up to a measly $485 million. Ouch.

Patrick Mullin, the big boss at Mantra, was all smiles talking to us about being a "fully compliant, end-to-end ecosystem" for RWA tokenization and trading. Fresh off snagging a VASP license from Dubai's VARA, they were ready to roll as a legit virtual asset exchange.

But with this sudden drop, who knows if those plans are still on track?

MANTRA Ecosystem Fund

Hold up, there's more! Mantra just launched the MANTRA Ecosystem Fund (MEF), aiming to throw support at RWA and DeFi projects worldwide for the next four years. They're dishing out OM-token grants and capital investments, focusing on everything from lending and trading to asset management and infrastructure.

And get this, they inked a whopping $1-billion tokenization deal with DAMAC Group, covering real estate, hospitality, and data centers. Sounds like big moves, right?

But the crypto X community isn't buying it. They've been quick to call out some shady stuff going on.

One research analyst, Choze, didn't hold back, comparing Mantra's crash to the infamous May 2022 Terra ecosystem collapse. "Welcome to Terra Luna V.2," Choze tweeted to over 20,000 followers.

And it gets worse. "The $OM team dumped their entire allocation," Choze added. "That's 90% of the total circulating supply, gone. They also deleted Mantra's official Telegram group. Just like that, $3.5 billion in market cap vanished."

Even RWA bull TrimBot blasted Mantra as "pure market manipulation."

We tried reaching out to a Mantra spokesperson, but no luck. Their website's either down or not taking media inquiries. What's going on over there?

More on MEF

"With the MEF, we're not just writing checks—we're building a strategic on-ramp for the next wave of blockchain innovation," Mullin declared earlier this month.

"This fund will serve as a growth engine, giving founders access to capital, infrastructure, and a deep regulatory support network," he added.

The MEF's got a global coalition of heavy hitters backing it up, including Laser Digital, Shorooq Partners, Brevan Howard Digital, Valor Capital, Three Point Capital, Amber Group, Manifold, UoB Venture, DAMAC, Fuse, LVNA Capital, and Forte.

We tried reaching out to Three Point Capital, but couldn't even submit an inquiry. What's the deal?

This story's still unfolding, folks. Keep your eyes peeled for more updates. This is one wild ride you won't want to miss!